China faces an economic reckoning as Covid-19 turns world against globalisation

One of the more worrying consequences of the

coronavirus

is that it looks likely to become a catalyst for deglobalisation.

At the centre of this will be the decoupling of the Chinese economy with developed economies and the US in particular. The world’s three largest free economies – the European Union, the

United States

and

Japan

– are all drawing up separate plans to lure their companies out of China.

European Union trade commissioner Phil Hogan has called on companies to consider moving away from China; US President

Donald Trump’s

top economic adviser Larry Kudlow has said the government should pay the costs of American firms moving manufacturing back from China onto US soil; and Tokyo has unveiled a US$2.2 billion fund to tempt Japanese manufacturers back to Japan or even to Southeast Asia.

https://www.scmp.com/week-asia/opinion/article/3082444/coronavirus-china-faces-economic-reckoning-covid-19-turns-world